SEBI on Wednesday exempted the government from making an open offer for the shareholders of Punjab National Bank (PNB) but directed reduction in non-public shareholding in the lender post capital infusion.
In February, PNB filed an application on behalf of the Centre seeking exemption from open offer requirement under takeover regulations. After capital infusion, the government’s stake in PNB would rise by 5.19% to 75.41%.
Under SEBI norms, entities are required to make an open offer if their shareholding goes beyond a certain threshold. Against this backdrop the bank sought SEBI’s exemption from the open offer requirement for the government.
According to SEBI, there would be no change in control of the bank pursuant to the proposed acquisition as the change would only be in the quantum of shares held by the government.
“I am of the considered view that exemption as sought for in the application made by the target company, be granted to the proposed acquirer/ GOI...,” SEBI Whole-Time Member G. Mahalingam said in an order on Wednesday.